A buyer’s broker agreement aims to ensure compensation for Washington real estate agents who spend time and effort working with buyers. In exchange, the buyers feel comfortable dealing with a professional, committed agent. While every agreement may differ, pay close attention to the following sections.
Fill in the starting and ending dates. Finding the right property can take weeks or months, so the agent might want this agreement to be in effect for three or more months.
Property location and price range
As a buyer, you might want the retain the ability to work with multiple agents. Some agents specialize in homes located in particular cities and price ranges. In that case, restricting yourself to using only one agent might not be your best choice if your search leads you in another direction. Fill in the blanks to reflect any limitations you wish to implement regarding your contractual obligations with a particular agent.
A retainer is the non-refundable amount of money a buyer is willing to pay an agent as compensation for their help. An option may allow the retainer to be credited back to the buyer if a deal closes and the agent receives a seller-paid commission.
Compensation is the minimum commission a real estate agent’s broker will accept. Suppose the agent enters 3% of the purchase price in this field. If the buyer purchases a home in which the commission is only 2%, they will be legally obligated to pay the agent’s broker the 1% difference.
This section protects an agent from losing a commission for a stated period after this agreement expires. Suppose the buyer uses another agent and closes on a property initially introduced to them by the contractual agent. In that case, the buyer will owe that agent’s broker the previously mentioned compensation.
This section allows the buyer to terminate the agreement by submitting a written notice. The protection period remains in effect.
Real estate disputes can lead to various resolution scenarios, such as nonbinding mediation, arbitration or civil lawsuits. Although a buyer’s broker agreement is usually short, there can be unpleasant consequences for the buyer if they violate the conditions.
The decision to sign this type of agreement is one of personal choice. Read it carefully and negotiate any terms you find unacceptable.